Biz2Credit revealed that Big Banks approved 22.9% small business loans in December. Year closed with a post-recession high, marking 0.1% increase from November.

1. 62.5%62.4%
Small Business Loan Approval Rates End year on high
note at big banks and institutional lenders
Optimism for Continued Growth in Loan Approval percentages as new year begins
DECEMBER 2015Small Business Lending Index
According to the Biz2Credit Small Business Lending IndexTM
, a monthly analysis of 1,000 loan applications on Biz2Credit.com
Approval rates at institutional lenders and big banks improved to new post-recession highs in December 2015, according to today's Biz2Credit’s December
Small Business Lending Index™, an analysis of more than 1,000 small business loan applications on Biz2Credit.com.
As the U.S. economy has steadily improved, big banks and institutional lenders are more frequently granting loan requests. Additionally, small banks saw an
increase in December loan approval rates in what has been an up-and-down year. Meanwhile, loan approvals at credit unions and alternative lenders
continued to slow despite encouraging developments in the economy.
About the Biz2Credit Small Business Lending IndexTM
Biz2Credit analyzed loan requests ranging from $25,000 to $3 million from companies in business more than two years with an average credit score above 680.
Unlike other surveys, the results are based on primary data submitted by more than 1,000 small business owners who applied for funding on Biz2Credit's online
lending platform, which connects business borrowers and lenders.
TM
Loan Approvals at Small banks
Lending approval rates at small banks improved to 49.1% in December, from 48.9% in November.
"We are seeing increasing interest from international funds seeking higher yield investments, Institutional lenders have reduced
the risks on these types of investments through digital algorithms that have automated the loan approval process and global
investments are becoming more mainstream. With the weakening of emerging markets and strong value of the U.S. dollar, we
are anticipating more international funds to enter the small business finance mix.” - Biz2Credit CEO Rohit Arora
“
Loan Approvals at Institutional Lenders
Lending approval rates at institutional lenders experienced a slight uptick in December, improving 62.5% from 62.4% in
November.
Loan Approvals at Big banks
Big banks ($10 billion+ in assets) approved 22.9% of small business loan approvals in December, an increase by
one-tenth of a percent in November.
yearly comparison
22.9%
21.1%
MONTHLY comparison
Nov’15 Dec’15
22.9%22.8%
yearly comparison
49.1%
49.7%
MONTHLY comparison
Nov’15 Dec’15
49.1%48.9%
yearly comparison
62.5%60.10%
MONTHLY comparison
Dec’15Nov’15
Credit union approvals
Credit unions approved 42.3% of loan applications in December – an all-time Index low – down from 42.4% in November.
yearly comparison
42.3%
43.3%
MONTHLY comparison
DEC’14 DEC’15 Nov’15 Dec’15
42.3%42.4%
Dec’14 Dec’15
DEC’14 Dec’15
Dec’14 Dec’15
Small business loan approvals by Alternative lenders
Loan approval rates at alternative lenders remained unchanged in December, sitting at 60.7%, their lowest rate since August
2011. Alternative lenders' approval percentages have steadily declined since January 2014, coinciding with the emergence of
institutional lenders in the small business lending marketplace.
yearly comparison
60.7%
61.8%
MONTHLY comparison
“Alternative lenders are under increased pressure to offer financial products at lower prices, They’ve struggled to adapt and this
has translated to the gradually decline in loan approval rates.” - Biz2Credit CEO Rohit Arora
“
Dec’14 Dec’15 Nov’15 Dec’15
60.7%60.7%
“The big banks have maintained their aggressive approach to lending to small businesses and with the adoption of the Federal
Reserve's interest rate hike, I expect they will be even hungrier to grant loan requests, The adoption of technological
advancements on the digital platforms of big banks has streamlined the loan application process and has resulted in lower
chances of loans defaulting, thus increasing profitability and a higher volume of loan approvals.”- Biz2Credit CEO Rohit Arora
“
"Small banks are approving more small business loans under the SBA loan program, which reduces the risk assumed by
lenders, These are low-risk, low-reward types of loans and have resulted in the increase in loan approvals over the last month.”
- Biz2Credit CEO Rohit Arora“
"Credit unions are losing market share and higher credit-quality borrowers due to their failure to adequately adapt to the
technological advancements in the industry, Borrowers seek speed and convenience; many credit unions are lacking in the
digital department and this has resulted in their decline in popularity.” - Biz2Credit CEO Rohit Arora“